Nvidia’s $46.7B Q2 proves the platform, but its next fight is ASIC economics on inference

Nvidia reported $46.7 billion in revenue for fiscal Q2 2026 in their earnings announcement and call yesterday, with data center revenue hitting $41.1 billion, up 56% year over year. The company also released guidance for Q3, predicting a $54 billion quarter.

Behind these confirmed earnings call numbers lies a more complex story of how custom application-specific integrated circuits (ASICs) are gaining ground in key Nvidia segments and will challenge their growth in the quarters to come.

Bank of America’s Vivek Arya asked Nvidia’s president and CEO, Jensen Huang, if he saw any scenario where ASICs could take market share from Nvidia GPUs. ASICs continue to gain ground on performance and cost advantages over Nvidia, Broadcom projects 55% to 60% AI revenue growth next year.

Huang pushed back hard on the earnings call. He emphasized that building AI infrastructure is “really hard” and most ASIC projects fail ...